Apple may have breached EU competition law by requiring app developers to use its proprietary in-app purchase (IAP) system and restricting them from telling iPhone and iPad users about other, cheaper purchasing possibilities outside of apps, the European Commission said Tuesday. The antitrust probe concerns the application of the rules to all apps that compete with Apple's apps and services. The investigation follows complaints by Spotify and an e-book/audiobook distributor on the impact of App Store rules on competition in music streaming and e-books/audiobooks. Apple appears to have a "gatekeeper" role in the distribution of apps and content to users of its devices, said EC Executive Vice President Margrethe Vestager, who handles competition policy. The EC wants to ensure the rules don't distort competition in markets where Apple competes with other app developers, such as with its music streaming service or Apple Books. The commission is also looking into whether the tech giant's conduct on Apple Pay violates competition rules. The opening of a formal investigation doesn't prejudge its outcome, the EC noted. Apple didn't comment. The App Store makes it possible for thousands of small European developers to create and distribute their products and services worldwide, emailed ACT|The App Association Chairperson Mike Sax. ACT wants to ensure the EC "hears the voice of small app makers." An EC decision shouldn't affect the U.S. unless presumptive presidential candidate Joe Biden wins, emailed Cowen's Paul Gallant. Apple "appears to have forged the best relationship with Trump among Big Tech CEOs," but if Biden wins, all four tech platforms will face more Democratic scrutiny, the analyst said: If the EC forces Apple to allow non-IAP payments next year, a Biden DOJ is likely to ask, "Why not for US consumers too?"
Dugie Standeford
Dugie Standeford, European Correspondent, Communications Daily and Privacy Daily, is a former lawyer. She joined Warren Communications News in 2000 to report on internet policy and regulation. In 2003 she moved to the U.K. and since then has covered European telecommunications issues. She previously covered the U.S. Occupational Safety and Health Administration and intellectual property law matters. She has a degree in psychology from Duke University and a law degree from the University of Tulsa College of Law.
Attacks against 5G infrastructure and disinformation on health risks (see 2005150022) imperil rollout of services needed to ensure Europe's recovery from the pandemic, speakers said at a Wednesday webinar hosted by GSMA and the European Telecommunications Network Operators' Association. 5G is the "missing link" between Europe's digital strategy and its environmental plans, but misinformation risks significantly delaying the deployment, said ETNO Director General Lise Fuhr. There have been about 142 site attacks in 10 EU countries and the U.K., which had the most attacks, said GSMA Head-Europe Afke Schaart. It's not just posting misinformation; it has become more mainstream, with a global 5G protest planned for Saturday, she said. The impact includes some countries postponing spectrum auctions, Schaart said. One way to fight back might be for local politicians to get involved in decisions on deploying 5G, said Member of European Parliament Miapetra Kumpula-Natri, of the Progressive Alliance of Socialists and Democrats and Finland. Local authorities should be given information about the technology so citizens can trust their decisions on installations. She urged governments planning 5G spectrum allocations to focus on coverage rather than revenue to allow operators to build out. Deployment has challenges, said Susana Solis Perez, of the Renew Europe Group and Spain. These include lack of demand for 5G services, environmental issues, electromagnetic frequency (EMF) considerations, network security and the risk of widening the digital divide. There's no time to waste in building infrastructure in response to COVID-19, she said. EU's e-commerce directive is "too weak" to attack disinformation, said Lisa Felton, Vodafone Group head-data, services and consumer regulation. The upcoming EC proposal for a digital services act should include legal requirements for actions online platforms must take in response to disinformation if they don't want to lose safe harbor liability protections, she said. The EC believes public health protection is paramount, and recommends maximum EMF exposure limits with wide safety margins based on scientific data, said Andreas Geiss, DG Connect head of unit-spectrum policy. The EC wants to focus debate on those facts and evidence, seeking to inform people about EMF and the benefits of 5G, he said. There's little evidence RF radiation causes cancer, affects fertility, results in changes to development, cognition or behavior, harms the immune systems or causes electrohypersensitivity, said Frank de Vocht, University of Bristol senior academic in epidemiological and public health. The idea that 5G affects the immune system is the basis for 5G/COVID-19 theories "haunting" social media, but there's no plausible theory on how millimeter waves could do that, he said.
As the EU general data protection regulation nears its second anniversary May 25, privacy officials said this month the law is working well, but they need more resources. It's of "utmost importance" national governments fund data protection authorities (DPAs) effectively, European Data Protection Board Chair Andrea Jelinek said. Priorities for the third year include more intensive work on advanced technologies such as artificial intelligence and blockchain, plus guidance on the implications of COVID-19 for data protection, said EDPB's annual report, issued Monday.
The coronavirus pandemic could change the relationship between governments and platforms, said Facebook CEO Mark Zuckerberg and European Internal Market Commissioner Thierry Breton on a Monday virtual debate. Everyone is trying to figure out the situation, which requires more public-private sector cooperation, said Zuckerberg. Breton actively contacted platforms to see how they could help fight COVID-19 disinformation and keep networks running, Zuckerberg said. Facebook and others worked quickly to reduce bandwidth to ensure people could stay connected. Breton said he has learned it's important to "anticipate." Telecom networks weren't designed for a situation where everyone was living, working and learning at home. But frank discussions with Facebook, Netflix and other platforms resulted in fast reaction as both parties worked to cope. Asked how they see their respective roles in the pandemic exit and recovery stages, Breton said Europe is focused on a "green deal" and on teleworking. Ensuring people have access to accurate information in the health crisis is important, said Zuckerberg. The EU learned "we have to invent together our future," said Breton. Platforms must learn to cooperate with administrations, he said: It's not governments that should adapt to platforms but the reverse. The European Commission is working on prior regulation of platforms as it has enacted for telcos, he said: The less regulation needed the better, but if platforms and governments can't find a way to cooperate, the EC "will regulate, of course." Asked about the need for a digital deal between governments and platforms, Zuckerberg advocated a broader partnership, saying platforms shouldn't be left to govern themselves, and such a deal is "inevitable," including regulation. But he voiced concern about whose regulatory framework will win globally. Countries like China have different values from democratic nations, and some other governments are considering this model, with localized data and less respect for human rights. That model is dangerous, he said; the best antidote is regulation that comes from democracies. The right kind of framework requires clear and strong values, which Europe has, said Breton. Platforms must understand those values to help build a new form of governance, which won't happen overnight, he said.
EU rules on liability of online intermediaries shouldn't change under upcoming draft legislation, some stakeholders said. The Digital Services Act (DSA) is intended to update the 2000 EU e-commerce directive, which set minimum liability standards for internet intermediaries and established "safe harbor" exemptions. Although work on the proposal is in an early stage, digital rights activists and some European Parliament members urge retaining the safe harbor provisions. The European Commission told us it intends to unveil a proposal for consultation in coming weeks, and a draft measure "later this year."
ICANN's rejection of the Public Internet Registry deal won't affect the .org community, a PIR spokesperson emailed us. "PIR will continue to be an exemplary registry" that supports the work of the mission-driven .org community, he said. Internet Society President Andrew Sullivan said he expects PIR to continue running its registries "in an exemplary fashion and in strict conformance" with its agreements with ICANN. The domain name industry has changed in recent years, so registries need to adapt, Sullivan emailed us. ISOC, which had hoped to sell PIR to private equity firm Ethos Capital, "believed that a specialist investor would be in a better position to support" PIR's stability, but since ICANN "has refused its consent (see 2005010003) that avenue is not open to PIR." Ethos Capital didn't comment Wednesday. The registry "did not ask to be sold and it was far from fun to be constantly attacked for it, but the work we did supporting the .ORG Community in spite of it was phenomenal," blogged CEO Jon Nevett. PIR plans to expand the .org community to underserved regions in Africa, Latin and Central America and Southeast Asia, he said. Regardless of what ISOC and ICANN do, the matter highlighted the extent to which the current domain name ecosystem "depends on informal understandings of what the various actors are going to do," rather than formal commitments, said Firefox Chief Technology Officer Eric Rescorla. Many who opposed the sale expected ISOC would continue to manage .org in the public interest even though PIR's registry agreement doesn't include such an obligation. The deal's opponents and supporters seemed to have "radically different expectations" about ICANN's role, said Rescorla: "It remains to be seen whether this is an isolated incident or whether this is a sign of a deeper disconnect that will cause increasing friction."
ICANN rejected the proposed sale of Public Interest Registry to Ethos Capital (see 2005010001), Chairman Maarten Botterman blogged Thursday night. Directors said withholding consent to the transfer "is reasonable, and the right thing to do." The deal attracted scrutiny from legislators and at least one state attorney general, and was roundly opposed by nonprofit advocates. The decision "sets a dangerous precedent with broad industry concerns," said Ethos. The rejection restores public confidence, said California Attorney General Xavier Becerra (D).
ICANN rejected the Internet Society's proposed sale of Public Interest Registry to Ethos Capital after "completing extensive due diligence," Chairman Maarten Botterman blogged Thursday night. Directors found withholding consent to the transfer "is reasonable, and the right thing to do." The deal had attracted scrutiny from legislators and from at least one attorney general, while nonprofit advocates opposed it. The decision "sets a dangerous precedent with broad industry implications," said Ethos.
ICANN revenue could drop 5% over FY 2021-2025 due to COVID-19, officials said at a Tuesday webinar. The $11.1 million decrease is expected to come from fewer domain name registrations and fees from contracted parties such as registries and registrars, said Director-Financial Planning and Analysis Shani Quidwai. The webinar was to allow public feedback on a proposed five-year strategic, operating and financial plan, and FY 2021 (ending June 30) operating plan and budget. The drafts published in December are now slightly obsolete and have been tweaked before expected board approval next month, said Chief Financial Officer Xavier Calvez. The nonprofit expects the pandemic to affect all its planned activities and finances for the rest of this year and all the next fiscal year, which is why it developed a new set of financial projections, he said. Changes to the revised documents include the lower revenue projection and reduced personnel costs due to less hiring and less travel and meeting cost because of travel restrictions. Plans for a new round of generic top-level domain names remain unchanged, Quidwai said. The organization is in good shape to weather the crisis because of a stable reserve fund and control over its finances, said CEO Goran Marby, but there's "a lot of uncertainty going forward" that will affect ICANN as an institution.
Apps that warn citizens to avoid people infected with COVID-19 are a key element in lifting lockdowns, the European Commission said Wednesday. Its European road map toward easing containment measures noted contact tracing can help. Apps must comply with all EU privacy and data protection rules, the EC said. Among unresolved questions are whether the regime should be mandatory and how effective it will be.